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CHAPTER 2

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Organisational strategy, structure, culture and policy

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Session objectives

  • Explain the concepts and characteristics of SHRM
  • Understand the relationships between SHRM and business strategies
  • Appreciate the various critiques of SHRM
  • Discuss several models of SHRM
  • Explain the relationships between SHRM and organisational strategy, structure, culture and policy
  • Discuss the roles and structures of HR functions

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HR and organisational strategy linkages:

    • Accommodative
    • Interactive
    • Fully integrated

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SHRM and business strategy

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  • Can SHRM adopt a flexible and strategic perspective?
  • Can practitioners implement the SHRM agenda?

Critics of SHRM

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SHRM – strategy, structure, culture and policy

Relationships:

  • Culture
  • Strategy
  • Structure

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  • Numerical flexibility
  • Functional flexibility
  • Distancing
  • Pay flexibility

The ‘flexible firm’ model

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Organisational culture and HRM

  • Organisational culture includes philosophies, values, beliefs, work systems and practices, expectations and limitations on employee behaviour
  • Four broad types:
    • Elite
    • Meritocratic
    • Collegial
    • Leader-focused

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Cultural change

  • Excellence theorists believe that culture can be modified to achieve efficiency/profitability
  • Structural efficiency principle (SEP) and Award restructuring put pressure on organisations to change work practices and modify traditional cultures
  • HR specialist drives the process
  • Change can also result from innovative HR approaches

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Principles of effective HR policies

  • Congruency
  • Compatibility
  • Clarity
  • Stability
  • Flexibility
  • Cultural appropriateness
  • Relationships

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HRM structures

  • No HR function
  • Line managers alone
  • Line managers, with centralised HR support
  • Centralised functional generalists
  • Centralised functional specialists
  • Decentralised functional generalists or specialists
  • Contract specialists

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Strategic partnerships

  • The new HR
  • Devolvement of HRM functions
  • Joint provision of HR services
  • Strategic focus of role